Tax Advisory Spain: The Supreme Court rules on vacation pay

The employee must obtain tax advice and receive the remuneration corresponding to the work period

On May 22nd, the Supreme Court (TS) issued its statement on the compensation of a part-time employee's vacation. In this case, this body analyzes the cases in which a worker has had extended hours during the validity of said vacation.

According to Rec. 275/2016 of the TS, the worker must receive on vacation the ordinary remuneration and comparable to the periods of work. This will occur when the salary in variable amounts for the vacation period is interpreted as the right to earn the average that the worker would have received during the eleven months of the annuity corresponding to each paid vacation period.

However, the Social Chamber understands that the remuneration that the worker has guaranteed for his vacation period is ordinary or habitual. Therefore, it will be the result of averaging the one received over the eleven months corresponding to the paid vacation accrual annuity.

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Etiquetas: COVID-19, international tax advisor, tax advice Spain, Supreme Court, Holidays, Workday